NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back Ahead Of Inflation Reports

SP500

SP500 rebounded from session lows as traders prepared for tomorrow’s inflation data. Analysts expect that Inflation Rate remained unchanged at 3.1% in February, while Core Inflation Rate declined from 3.9% to 3.7%. The reports will have a significant impact on market dynamics as they will show whether Fed has a chance to cut rates at the upcoming meetings. At the same time, it remains to be seen whether higher-than-expected inflation could trigger a sustainable pullback in the equity markets. Traders are buying stocks as they bet on the AI revolution, so market participants may ignore the unfavorable changes in Fed policy outlook.

From the technical point of view, SP500 received support near the 5100 – 5110 range. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in the near term. A move above the 5150 level will open the way to the test of the resistance at 5180 – 5190.

NASDAQ

NASDAQ remained under pressure as traders took some profits off the table in tech stocks. Advanced Micro Devices and NVIDIA were among the biggest losers in the NASDAQ index today.

NASDAQ has found some support near 17,900 and moved towards the resistance at 18,000 – 18,050. If NASDAQ climbs above this level, it will head towards the next resistance, which is located in the 18,350 – 18,400 range.

Dow Jones

Dow Jones has also managed to rebound from session lows, driven by the strong performance of Unitedhealth Group stock, which was up by 2.5%. Meanwhile, Boeing was down by more than 3% as traders reacted to the report of Justice Department investigation.

Dow Jones may face resistance near the 50 MA at 38,825. In case Dow Jones settles above this level, it will head towards the resistance at 39,250 – 39,300.

For a look at all of today’s economic events, check out our economic calendar.